German speaking market promises the best opportunities for UK software and IT services companies in 2014. UK’s partnership with CeBIT creates perfect atmosphere for first explorations.
Villingen-Schwenningen (D) / Boston (USA), February 25th 2014 – With just 10 day to go before the worlds largest IT fair in Hannover, Germany kicks off, the go-to-market and positioning experts of bloodsugarmagic stress the opportunities for UK It companies to approach the German market.
bloodsugarmagic defines three good reasons why UK software and IT service companies should seize the CEBIT momentum to explore new markets in Germany, Austria and Switzerland.
1. UK’s IT companies have high visibility due to CeBIT
Being this year’s official partner country for CeBIT raises a lot of interest in UK IT high tech software and service companies. With more visibility in media and on thefloor of the fair itself, UK companies should take advantages of the hype around CeBIT. A several hundred thousand visitors are a great opportunity for new leads, more sales, and interesting new partnerships.
2. Germany’s IT markets are close at hand
From UK airports you can reach almost any place in Germany within 2 hours. Business thinking, requirements, and culture is very similar and also the market shares EU driven compliance and legislation. Language is much less an issue than expected: German IT decision makers are used to English as their day-to-day business language.
3. Germany is currently the strongest economy in Europe
Germany’s Ifo Business Climate Index recorded a reading of 111.3 in February, up from last month’s reading of 110.6, data from the Munich-based CESifo group shown Monday. In particular, software vendors and IT service providers have high expectations; 87% of software vendors and 85% of IT service companies are expecting an increase in revenues according to Germany BITKOM high-tech association. Combined with the other German speaking markets in Austria and Switzerland it's the largest IT market in Europe.
“UK It companies should now consider entering the German It market. The demand for innovative IT to fuel the economic powerhouse is huge” said Bernd Hoeck, managing partner of the go-to-market think tank bloodsugarmagic. “In contrast to the UK market which is heavily depending on customers from the financial industries, the demand for IT products and services is created by a widespread spectrum of many strong industries from finance to manufacturing, from automotive to engineering and services. This makes sales for IT much more robust against economic downturns.”
Based on the latest BITKOM research figures, bloodsugarmagic expect the software business in Germany to grow about 5% and IT services about 2.5% in 2014 from a high level already. “UK firms can participate in this long-lasting trend”, Hoeck continues. “CeBIT is a perfect place to explore new channels, partnerships or to take first steps into the German market. Even if you have no own presence at the UK pavilion, you can still come over and talk to us and many other players in this market.”